YTC Rules

1. The trend (inertia) in the price movement plays a very crucial role. We will only consider the trend reversal at the boundaries of the structural framework when weakness is shown in the trend. No matter how weak the trend is, we never expect a reversal of trend in between the structural boundaries until that time when price breaks the trend violation pivot.

Look at the above images. In the first image, weakness is shown at the structural s tructural  boundary and hence we anticipated a trend reversal ( i.e price i.e  price will break the trend changing pivot). In the second image, weakness is shown by the trend in between the structural boundaries. We anticipated a complex pullback (3 swing retracement), rather than a normal pullback (single swing) and expected that the price will continue to move in the previous trend after the complex pullback (CPB). Look Look that the trend violation point is not broken and price continued its uptrend after the CPB. 2. Price always moves in the direction of strength and against the direction of weakness.

WHEN PRICE IS IN BETWEEN THE STRUCTURAL SUPPORT AND RESISTANCE :RULE 1 :When there is no weakness evident i n the tr end (u ptr end/downtr end), we expect th at the trend will contin ue with a normal pull back (sin gle swing).

RULE 2 :I f weakness i s shown in th e tr end, we expect a complex pul lback in stead of nor mal  pullback. We don’t expect the tr end change.

RULE 3 :When pr i ce i s in a sideways tr end/r ange, if ther e is no strength di splayed at the ran ge boundar ies, we expect that th e price wi ll conti nu e to move in th at range.

RULE 4 :When pr i ce i s in a sideways tr end and strength i s shown on approachi ng the r ange boundar ies, we expect a r ange breakout. Then we watch th e pr i ce closely f or evidence of weakness after the br eakout.

1. If weakness is shown in the direction of the breakout, we expect that the breakout will fail.

2. If weakness is shown in the pullback to retest the range boundaries, we expect that price will continue in the direction of the breakout.

These are the four rules that must rotate in our mind when price is moving in between the structural support/resistance. Now, lets look at the rules when price is interacting with the structural support/resistance. WHEN PRICE IS INTERACTING WITH THE STRUCTURAL BOUNDARIES RULE 5 :When th er e is no evidence of strength shown on approachi ng the str uctur al support/r esistance, we expect th e TEST of the fr amewor k h olds, i.e, we expect th at th e tr end wi l l r ever se.

RULE 6:When pri ce i s showin g str ength on appr oachi ng the str uctur al f r amework boundary, we expect a str uctur al f r amework breakout. T hen we watch th e pri ce acti on f or clues of weakness after the breakout.

1. I f weakness i s there in the dir ection of the breakout, we expect that the breakout wil l f ail an d pr ice r etur ns to the previou s fr amework.

2.

I f weakness is shown in the pull back t o r etest th e str uctur al fr amework boundar y, we expect that pr i ce wil l contin ue to move i n th e dir ection of th e breakout.

These are the 6 rules that we use for predicting the high probable future direction. Don’t think about entries yet. We now have high probable future direction. Now we need to find a low risk area to enter into the high probable direction